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Wolf Money(Valuetronics 1H 2024 result)
https://lonewolfinvestor.blogspot.com/2023/11/wolf-moneyvaluetronics-1h-2024-result.html?m=1
https://lonewolfinvestor.blogspot.com/2023/11/wolf-moneyvaluetronics-1h-2024-result.html?m=1
You are right 5.2cents. Cash rich hopefully someone buy over 0.8 will be happy. Otherwise, the know nothing cockroach is there, just know how to sell down the share price.
tccroy ( Date: 09-Nov-2023 09:16) Posted:
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Yup for the whole year
arkan1111 ( Date: 09-Nov-2023 09:12) Posted:
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5.2.cents make me so happy, only 0.08 HK = 0.014S
tccroy ( Date: 09-Nov-2023 08:37) Posted:
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Wow, dividend 5.2 cents per share.
Excellent results, with another special dividend (which they can easily afford) Implies an 8% dividend yield which is very high for a company with no debt and cash on balance sheet equivalent to market cap - no debt means no risk on that front and the returns are not juiced by gearing (in fact quite the reverse). Net profit up 42% YoY, with both operational profit and interest income up.. Guidance is pretty positive (albeit with the normal macro caveats).
Let's wait for surprised news from Valuetronic, hopefully something big
Alignment ( Date: 08-Nov-2023 08:43) Posted:
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Given there is a sizable gap between the share price and what the company is actually worth, this of course makes it easier for a buyer and existing shareholders to find a price somewhere in the middle to transact.
Ultimately it depends on what the two substantial shareholders want - they are still executives in the business but they have been working here since the 1990s at some point they must be considering next steps. In the meantime they (like other shareholders) are accreting slowly via the share buybacks.
Ultimately it depends on what the two substantial shareholders want - they are still executives in the business but they have been working here since the 1990s at some point they must be considering next steps. In the meantime they (like other shareholders) are accreting slowly via the share buybacks.
So much cash, Any chances to buyover ?
Presumably some investors buying in ahead of the results release on Thursday expecting/hoping for another special dividend as happened in May.
Aside from the valuation implication of a company having effectively as much cash on balance sheet (with no debt) as the market cap on top of owning a profitable business, the fact that it has so much cash has meant that its profit from interest has increased significantly as interest rates has risen. This was a driver in the company paying the special dividend in May, and given the rapid increase in interest rates since then this will only be more so the case for the latest half year. The fact that the cash is as big as the market cap means this interest income increase is material for the company as a whole.
Aside from the valuation implication of a company having effectively as much cash on balance sheet (with no debt) as the market cap on top of owning a profitable business, the fact that it has so much cash has meant that its profit from interest has increased significantly as interest rates has risen. This was a driver in the company paying the special dividend in May, and given the rapid increase in interest rates since then this will only be more so the case for the latest half year. The fact that the cash is as big as the market cap means this interest income increase is material for the company as a whole.
Yup. I was about to ask the same question too...
tccroy ( Date: 07-Nov-2023 10:56) Posted:
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Yes u r correct. This counter is quiet and range bound. Actually I have collected enuf of dividends, waiting to sell and switch to other stocks.
TraderBen ( Date: 07-Nov-2023 10:58) Posted:
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this counter has been locked in range for many years alrdy.. likely results ok.. but there are better opportunties out there.. company has been active in SBB also..
tccroy ( Date: 07-Nov-2023 10:56) Posted:
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Valuetronic up 3 cents, any special news?
Wolf Money(portfolio update end Oct 2023) part 1 Valuetronics related
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyportfolio-update-for-end-oct.html?m=1
Wolf Money(portfolio update end Oct 2023) part 2 Valuetronics related
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyportfolio-update-for-end.html#google_vignette
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyportfolio-update-for-end-oct.html?m=1
Wolf Money(portfolio update end Oct 2023) part 2 Valuetronics related
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyportfolio-update-for-end.html#google_vignette
Wolf Money(Valuetronics)🙏
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyvaluetronics.html?m=1
https://lonewolfinvestor.blogspot.com/2023/10/wolf-moneyvaluetronics.html?m=1
PhillipCapital initiates &lsquo buy&rsquo on Valuetronics with TP of 61 cents
PhillipCapital analyst Paul Chew has initiated coverage on Valuetronics BN2 0.00% , an electronics manufacturing services (EMS) provider with a &ldquo buy&rdquo call and a target price of 61 cents.
&ldquo After five years of revenue decline, we expect a turnaround for Valuetronics after securing four new customers for FY2024/FY2025,&rdquo he writes.
After experiencing a revenue peak of HK$2.85 billion ($497.6 million) in 2018, the company saw its revenue decline by 29% to HK$2 billion in the past five years.
At the time, US customers were shifting their production operations out of factories in China and into Indonesia or Mexico. The move was due to tariffs that could go up to 25%. As such, Valuetronics had to spend HK$200 million to build a new factory in Vietnam.
Subsequently, the company faced challenges including pandemic-related component shortages, its customers exiting the Russian market as well as disruption in its business development activities due to the travel restrictions.
However, the major headwinds are deemed to be behind the company now, says Chew, who adds that the company is &ldquo poised for growth in the coming years&rdquo .
&ldquo We expect margins to improve from higher industrial and commercial electronics (ICE) contribution, weaker RMB and more stable component prices and depreciation,&rdquo he notes.
Furthermore, with its new plant set up in 2022, the company has been able to secure four new customers that will contribute to its revenue in FY2024 and FY2025.
&ldquo Customers are not willing to keep manufacturing solely in China. This is because of higher tariffs in the US, and customers wanting to de-risk due to the escalating geopolitical tensions,&rdquo Chew points out.
&ldquo The four new customers are for electronic price tags at retail outlets, liquid cooling solutions for gaming computers, electronic souvenirs in entertainment facilities and network access products,&rdquo he adds.
As at Chew&rsquo s report dated Sept 22, shares in Valuetronics are trading at 52.5 cents, which he deems as attractive at 9.6x P/E. The company&rsquo s net cash balance sheet of HK$1 billion is also something Chew is positive about.
&ldquo In February 2022, Valuetronics announced an aggressive share buy-back programme worth HK$250 million. The company has since utilized HK$68 million to repurchase 22.5 million shares. Another HK$182 million is available to purchase another 60 million shares at the current price levels,&rdquo says Chew.
His target price is based on 11x Valuetronics&rsquo FY2024 P/E, which is in line with industry valuations.
Paying a special dividend and continuing share buybacks - this company is certainly more bullish compared to most of its peers.
Slowly upping
8 Aug
hotelgrand ( Date: 18-Jul-2023 17:13) Posted:
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